BTC ETF

Exchange-traded funds that provide direct exposure to Bitcoin’s spot price, approved by the SEC in January 2024.

What is BTC ETF?

Spot Bitcoin ETF, or BTC ETF, is an investment vehicle traded on major U.S. stock exchanges like the NYSE and Nasdaq that hold actual Bitcoin in custody, tracking its spot price through professional custodians such as Coinbase. Approved by the U.S. Securities and Exchange Commission (SEC) on January 10, 2024, following a Grayscale lawsuit victory, they launched on January 11, 2024, enabling institutional and retail investors to access Bitcoin without managing private keys or wallets. As of 2025, 11 spot BTC ETF are active, with BlackRock’s iShares Bitcoin Trust (IBIT) leading at $86 billion in assets under management (AUM), holding approximately 625,000 BTC.

These BTC ETFs have driven significant institutional inflows, totaling over $14.8 billion year-to-date through 2025, reducing Bitcoin’s circulating supply by about 6.62% of its market cap. On September 12, 2025, BTC ETF recorded $642 million in net inflows, led by Fidelity’s FBTC with $315 million, contributing to a broader crypto market cap exceeding $4.11 trillion. Overall U.S. spot BTC-ETF AUM reached $219 billion by early 2025, with in-kind creations/redemptions approved in August 2025 to enhance efficiency.

Key products include Grayscale Bitcoin Trust (GBTC) at 1.5% expense ratio, ARK 21Shares Bitcoin ETF (ARKB) at 0.21%, and VanEck Bitcoin Trust (HODL) at 0.25%, with promotional waivers like IBIT’s 0.12% until January 2025 for the first $5 billion.